Stock market rebounds on this volume; ends week with losses

The Colombo stock market bounced back yesterday though on thin volumes whilst seeing another week of losses as investor sentiment remained bearish.

The All Share Price Index gained by 1.3% and the S&P SL20 rose by 1.8%. Turnover was Rs. 1.4 billion involving 72 million shares. 

During the week, the ASPI and the S&P SL20 lost 3.03% and 1.91% respectively, whilst recording an average daily turnover of Rs. 1.83 billion.

Asia Securities said the indices ended the week on a positive note on Friday  on the back of price gains in heavyweight stocks such as EXPO (+3.4%), LOFC (+8.8%), CLC (+7.8%), LOLC (+3.4%), BIL (+3.8%) and JKH (+3.1%). 

Turnover came in at Rs. 1,418  million (previous session - Rs. 2,921 million) led by EXPO (Rs. 323 million), BIL (Rs. 188 million) and LOFC (Rs. 96 million). 

Net foreign inflow continued for the fourth consecutive session coming in at Rs. 66 million, largely boosted by net buying in DIAL (Rs. 66 million). 

Earlier, the ASPI opened trading on an upbeat note crossing the 10,400 mark and touched an intra-high low of 10,411 (+188 points) in the first hour of the session. However, the index saw a subsequent drop to 10,272 and moved in the narrow range of 10,270-10,300 till mid-afternoon trade. 

Witnessing a late pickup, the ASPI closed out the session above 10,350 (+1.3%) while the S&P SL20 index ended with a gain of 1.7%t at 3,585. The breadth of the market turned positive with 140 price gainers and 53 decliners.

First Capital said the Bourse closed the week by posting its best day in four days, aided by the renewed interest of investors. 

“Positive momentum was led by the announcements on Sri Lanka’s commencement of discussion with IMF and India’s pledge to support financial assistance to Sri Lanka with nearly $ 1.0 billion credit line which provided a short-term respite for investors amidst the current glooms,” it said. 

“The Index exhibited a steady upward movement gaining more than 180 points within the first half hour during the day reaching an intraday high of 10,414. Later on, the index had a volatile session although it witnessed a recovery and closed up at 10,354 earning 131 points for the day,” First Capital said adding turnover was significantly contributed by Transportation and Food, Beverage and Tobacco sectors which accounted for 41%.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, Commercial Bank and John Keells Holdings. Mixed interest was observed in Expolanka Holdings, LOLC Finance and LOLC Holdings, whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Dialog Axiata. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 3.38%. The share price of Expolanka Holdings increased by Rs. 8.50 (3.39%) to close at Rs. 259.50.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index increased by 1.70%. The share price of Browns Investments gained 40 cents (3.81%) to close at Rs. 10.90.

LOLC Finance, Dialog Axiata and LOLC Holdings were also included amongst the top turnover contributors. The share price of LOLC Finance moved up by Rs. 1.40 (8.81%) to close at

Rs. 17.30. The share price of Dialog Axiata closed flat at Rs. 11. The share price of LOLC Holdings appreciated by Rs. 26.50 (3.42%) to close at Rs. 801.75.

Separately, Tea Smallholder Factories announced an interim dividend of one rupee per share.